U.S. stock futures slipped Tuesday night as investors assessed the presidential debate between Republican presidential nominee Donald Trump and Vice President Kamala Harris and looked toward the August consumer inflation report due Wednesday morning.
Dow Jones Industrial Average futures fell 172 points, or 0.42%.
S&P 500 futures and Nasdaq 100 futures both dipped 0.52% and 0.68% respectively.
During Tuesday’s regular trading, the S&P 500 advanced nearly 0.5% and the Nasdaq Composite climbed 0.8%, aided by a jump in Nvidia shares.
It marked a back-to-back gain for the broad market benchmark and the tech-heavy index.
The 30-stock Dow was the outlier, falling 0.2% as a decline in JPMorgan shares weighed on the blue-chip index.
Traders are anticipating a key economic report Wednesday morning: August’s consumer price index.
Economists polled by Dow Jones expect the headline CPI to have risen 0.2% from the previous month and 2.6% from a year earlier.
The CPI report and Thursday’s producer price index could help determine the size of a widely expected rate cut at the end of the Federal Reserve’s two-day meeting on Sept. 18.
Fed funds futures trading suggests a 69% chance of a 25-basis-point rate cut and a 31% likelihood of a 50-basis-point reduction, according to CME’s FedWatch Tool.
You. s. Wednesday morning’s release of the August consumer inflation report caused stock futures to decline on Tuesday night as investors evaluated the Republican presidential nominee Donald Trump’s and Vice President Kamala Harris’s debate.
Futures for the Dow Jones Industrial Average dropped 172 points, or 0.42%. Futures for the SandP 500 and the Nasdaq 100 fell by 0.52% and 0.68%, respectively.
GameStop’s stock fell 10% during after-hours trading. A sale agreement for open market sales that the video game retailer filed with the U.S. S. Commission, permitting it to offer an additional 20 million shares of its Class A common stock for sale.
The S&P 500 gained approximately 0.5 percent and the Nasdaq Composite increased 0.8 percent during Tuesday’s regular trading, helped by a rise in Nvidia shares. The tech-heavy index and the broad market benchmark saw consecutive gains. A drop in JPMorgan shares affected the blue-chip index, causing the 30-stock Dow to be the anomaly, falling 0 points, or 2.5%.
The consumer price index for August is a significant economic report that traders are looking forward to on Wednesday morning. According to a Dow Jones poll of economists, the headline CPI increased by 0.2 percent from the prior month and 2 points,6 percent from the year before.
At the conclusion of the Federal Reserve’s two-day meeting on September, the size of a rate cut that is widely anticipated could be determined by the CPI report and Thursday’s producer price index. 18. According to CME’s FedWatch Tool, there is a 69 percent chance of a 25 basis point rate cut and a 31 percent chance of a 50 basis point reduction based on Fed funds futures trading.
According to Kristina Hooper, chief global market strategist at Invesco, “I think what we’re going to see next week is a Fed that gives us a 25-basis-point rate cut because to give us a 50-basis-point cut will set off alarm bells and would also be an admission of guilt” on CNBC’s “Closing Bell.”. ****.
“While I don’t think that the Fed’s prolonged use of extremely tight monetary policy causes irreversible harm, I do think that the likelihood of a recession rises with each passing day that our rates remain at these levels,” Hooper continued.
She pointed out that in order to signal that future rate reductions are planned sooner rather than later, central bankers might need to show this on their . plot, a chart that shows the projections of Fed policymakers, next week.
